Under partial unemployment, the state pays for 80% of employee wages while the company safeguards their job for when business picks up again and continues paying social security contributions. The measure was widely used during the pandemic when more sectors were added to the scheme that largely aims at industry companies.

In February, 8,971 people at 85 businesses in Luxembourg will be out of work under the scheme. While the number of applicants for partial unemployment was down from 100 in December to 93 in January, the number of employees impacted was up from 8,906. The committee refused eight requests although the grounds of refusal are not made public.

For 66 businesses, the measure should be short-term and is linked to a temporary downturn in business. In 12 cases, partial unemployment forms part of a redundancy plan. Seven companies had to furlough staff because of economic dependence on an outside source.

The government last year agreed that companies struggling because of the gas crisis would be eligible for short-term unemployment.

The measure does not apply to self-employed people, who received special benefits during the covid-19 pandemic. Real estate agencies lacking business in a slow market, for example, are run largely by self-employed agents, and the sector said it is to find solutions to support them.